Direct Market Access facility permits broker-mediated direct exchange access with mandated automated risk controls and broker liability.
Direct Market Access (DMA) permits brokers to give clients direct access to exchange trading systems through broker infrastructure, subject to exchange approval and statutory compliance. Brokers must submit Security Auditor-certified system details; exchanges decide within 30 days. DMA orders must route through brokers' Indian servers, maintain identifiable audit trails for five years, be distinguishable by exchanges, enforce strong access security and unique internal order numbering, and undergo periodic systems audits. Access is limited initially to institutional clients after KYC and due diligence; bespoke agreements must impose pre-release automated risk controls, limits, and permit withdrawal for misuse. Brokers remain fully liable and cross-client trades are prohibited.

Margin requirement for institutional trades moves from next-day collection to upfront margins ensuring parity with other investors
SEBI requires institutional trades in the cash market to be margined like other investors: initially on a next-day basis with margins collected from custodians upon trade confirmation, and subsequently moving to upfront margin collection. Stock exchanges must issue guidelines, update systems and bye-laws, test software, inform members, and report implementation status.

Load on bonus and reinvested units prohibited; AMCs must disclose non-levy in offer documents and issue addenda for investors.
Mutual fund AMCs are directed not to levy entry or exit load on bonus units and on units allotted on reinvestment of dividend; AMCs must disclose this non-levy in draft offer documents filed with the regulator. The no-load requirement applies to redemptions by existing unitholders from the regulator's effective date, and AMCs must issue addenda to scheme documents to implement the change, under the regulator's statutory investor protection and market-regulation powers.

Inclusion of National Investment Fund as eligible investor expands issuer eligibility under SEBI disclosure guidelines, effective immediately.
Amendment inserts sub clause (l) into sub clause (v) of clause 2.2.2B after sub clause (k), stating: "National Investment Fund set up by resolution F. No. 2/3/2005 DD II dated November 23, 2005 of Government of India published in the Gazette of India." The amendment is effective immediately and the revised Guidelines are published on SEBI's website.

Dematerialisation requirement enables shifting securities from trade for trade to rolling settlement once compliance and certification are met.
Companies with connectivity to both depositories may be shifted from the Trade for Trade Segment to the Rolling Segment if at least one-half of non promoter holdings under the listing agreement are in dematerialised form, evidenced by a certificate from the Registrar and Transfer Agent or, if no RTA, from a practicing company secretary or chartered accountant, and if there are no other grounds for continuation in the Trade for Trade Segment. Stock exchanges must report actions taken in their periodic development reports.

Price band policy: waive first-day bands for corporate reorganisations and specified restructuring, retain bands in other cases.
SEBI removes the requirement for a price band on the first trading day where trading follows mergers, de mergers, amalgamations, capital reductions, schemes of arrangement under the Companies Act or court sanction, rehabilitation packages under the Sick Industrial Companies framework, and Corporate Debt Restructuring packages; price bands remain applicable in other cases. Stock exchanges must implement the policy immediately and report compliance in their Monthly Development Report.

Governance transparency: exchanges must file biannual committee membership, appointment details and member bios to regulator.
Exchanges must submit half yearly disclosures listing names of members of governing and clearing committees, their categories, and appointment dates, and provide complete bio data evidencing professional competence and experience related to securities and derivatives markets, including statutory committees such as the Disciplinary Action, Arbitration and Defaulters Committees.

PAN number requirement: quote PAN without photocopy; merchant bankers must ensure acceptance and manage complaint redressal.
Applicants must quote PAN number on application forms but are not required to attach PAN photocopies; Merchant Bankers must ensure collection agents accept applications without photocopies and are responsible for compliance. For complaints on offer documents, Merchant Bankers must independently examine and respond to complainants, rectify inadequate disclosures and inform SEBI, and confirm to SEBI that issuer clarifications and disclosures are satisfactory and compliant with SEBI (DIP) Guidelines.

Revised New Scheme Report format requires mutual funds to disclose subscription, holding, dispersion and distributor commission details.
SEBI mandates a revised New Scheme Report format for mutual funds reflecting waiver of load for direct applicants and removal of initial issue expense. The format requires detailed disclosures: scheme identification, subscription and allotment data distinguishing direct and broker channels, NFO expenses and entry load, unit holding pattern by investor category, communication to unitholders on large holdings, distribution schedule for concentrated holdings, state-wise geographical dispersion, top ten agents/distributors by commission and mobilization, and compliance officer certification. The circular is issued under Section 11(1) of the SEBI Act read with Regulation 77.

Dematerialised securities transfer safeguards: SEBI removes DIS booklet issuance limits and directs depositories to implement compliance measures.
SEBI has withdrawn the restrictions that limited the number of slips per DIS booklet and the condition requiring issuance of a subsequent DIS booklet only after the prior booklet's slips were substantially used, directing depositories to amend bye laws, notify Depository Participants, monitor compliance, and report implementation to SEBI.

Mutual fund advertisement warning duration increased to ensure intelligible risk disclosure and better investor protection.
Mutual fund advertisements must present the prescribed standard warning intelligibly by displaying and voice overing it for five seconds in audio visual advertisements and by reading it in an easily understandable manner over five seconds in audio advertisements; all other conditions of the earlier circular remain unchanged and mutual funds must comply with these presentation requirements under the regulator's statutory authority.

Securities lending/borrowing treated as non transfer for tax purposes and not subject to securities transaction tax.
Lending and borrowing under SEBI's Securities Lending and Borrowing framework qualify under the existing Securities Lending Scheme exclusion, so such lending is not treated as a transfer for income tax purposes. Further, transactions of lending and borrowing do not fall within the statutory scope of the securities transaction tax levy and thus are not liable to securities transaction tax.

Dematerialisation requirement enables shift from trade-for-trade to rolling settlement when majority non-promoter holdings are dematerialised.
Companies with connectivity to both depositories may be shifted from Trade-for-Trade Segment to Rolling Settlement provided at least half of non promoter holdings are in dematerialised form, certified by the company's RTA or, if no RTA exists, by a practicing Company Secretary or Chartered Accountant; exchanges must also ensure no other grounds for continuation of TFTS exist and report actions in the Monthly/Quarterly Development Report (Section II, item 13).

Refunds through ECS expanded to additional centers to broaden electronic refund processing and require disclosure in offer documents.
The circular directs that refunds in public and rights issues shall be made available through ECS at an expanded roster of bank-managed clearing centres, supplementing existing electronic refund modes such as NEFT, RTGS and direct credit. Merchant bankers must include suitable refund instructions for these electronic modes in application forms, abridged prospectuses and prospectuses/letters of offer. The extension is effective immediately and the annexure lists the centres for operational implementation.

ECS refund facility expanded for public and rights issues, mandating electronic refunds and compliance with prior instructions immediately.
SEBI, under Section 11(1) of the SEBI Act, directs that refunds in public and rights issues may be made through ECS at an expanded set of centres following consultation with the Reserve Bank of India. This builds on the January 20, 2006 circular permitting electronic refunds (including NEFT, RTGS and direct credit). Issuers and bankers must comply with the earlier circular's instructions; the annexed list of designated ECS centres and managing banks is provided and the directive is effective immediately.

Removal of initial issue expenses requires mutual funds to fund distribution costs from entry load for new schemes.
Mutual funds must not charge or amortize initial issue expenses for new schemes; sales, marketing and distribution expenses must instead be borne from the entry load. The change applies prospectively to schemes launched after the circular and will be incorporated into subsequent amendments to the mutual fund regulations, implemented under SEBI's investor protection and market regulation powers.

Classification of FII investments in debt mutual funds as corporate debt restricts further corporate debt investments until compliance.
SEBI directs that FII and sub account investments in debt oriented mutual fund units be treated as corporate debt and counted within the corporate debt ceiling; accordingly, no further investment or rollover in corporate debt is permitted until aggregate holdings comply with the corporate debt limit. SEBI also cancels separate 100% debt FII allocations, makes unutilized government securities/T bill limits available on a first come first serve basis with 15 day validity, and requires custodians to reclassify and nullify prior equity reports for such mutual fund transactions on the prescribed reporting date.

Compulsory dematerialisation: three subsidiary bank scrips to be traded and settled only in dematerialised form.
Regulatory amendment requires compulsory dematerialized trading and settlement of three previously exempted subsidiary bank scrips; the banks must establish connectivity with both depositories within a specified short period and meet other prescribed norms before a separate intimation fixes the effective date for compulsory demat trading and settlement.

Volatility Index introduction: exchanges must construct and disseminate the index and publish its computation methodology.
Exchanges are directed to construct and disseminate a Volatility Index and to publish the detailed computation methodology; they may adopt existing global models or develop their own. The methodology must be made available to market participants and investors. Derivatives on the Volatility Index will be considered later based on experience and market awareness. The circular is issued under the regulator's statutory market development powers and is effective from issuance.

Long-term index options extended to multi-year tenures with standardized contract cycles and existing risk measures applied.
Introduction of long-term index options creates exchange-traded option contracts on major indices with multi-year tenures and a prescribed contract cycle ensuring at least a three-year horizon; existing short-term serial and quarterly contracts will continue alongside newly listed semi-annual months.